Student Education Loan Calculator – Estimate

Student Education Loan Calculators are an online tool that can be used to work out how much you will have to pay per month, how much interest you’ll be charged and how much you’ll pay overall. Whether you’re looking to apply for an Undergraduate, Postgraduate, Professional or International loan, using this tool will help you understand how much you’ll be paying.

Student loans can help you cover the costs of your studies, including tuition fees, housing, books, exams, travelling and more. The total amount you will have to pay back will depend on how much you borrow, the interest rate applied and how long you’re paying back over.

By using the Student Education Loan Calculator you can see how the varying amounts, interest rates and repayment periods will affect how much you pay back. This can help you understand how much you’ll have to pay per month by estimating what your budget will be like.

While the loan repayment calculation can be used to work out how much you’ll pay back in your currency of choice if you’re studying in India, USA, UK, Canada, Australia or another country, the eligibility requirements, interest calculations and student loan policies will vary depending on the country and lender.

How To Use A Student Education Loan Calculator

The calculator is easy to use. All you have to do is;

Enter the loan amount – The amount you’ll be borrowing to pay for tuition fees, housing and more.

Enter the interest rate – Add the interest rate your bank or financial institution are offering.

Select the repayment period – The length of time (in months/years) over which you’ll pay back your loan.

Enter further loan details – If available, add details such as the moratorium period, interest accrued, processing fees or other charges.

Select your currency – Select which currency you’d like to use; INR, USD, GBP, CAD or AUD.

Click calculate – This will show you how much you’ll pay per month in EMI, the interest you’ll pay and total repayment amount.

View different scenarios – Alter the loan amount, interest rate and repayment period to see how this will affect you.

For accurate results, use the interest rate and repayment conditions provided by your lender. If you’re yet to choose a lender, try calculating a few different scenarios to get an idea of how much you should budget for your education.

Student Education Loan Calculator Formula

Most student loan calculators will use the Equated Monthly Instalment (EMI) formula to calculate how much you’ll pay back if you’re paying back your loan equally each month with a fixed interest rate.

The formula is:

EMI = [P x r x (1 + r)^n]/[(1 + r)^n - 1]

Where;

EMI – The amount you’ll pay each month towards your loan.

P – The principal loan amount.

r – The monthly interest rate (in decimal).

n – The number of monthly instalments.

To calculate the monthly interest rate, divide the interest rate by 12 and then by 100.

For example;

r = 9 / (12 x 100) = 0.0075

Total repayment = EMI x n

Total interest = Total repayment – P

The formula assumes you will pay back your loan regularly each month with a fixed interest rate. It does not automatically include any extra interest that has been added during your studies/moratorium period however you can include this in the principal.

Example Calculation

Say a student decides to take out a loan to help pay their tuition fees at university.

Loan Detail Value

Loan amount ₹8,00,000

Interest rate 9% p.a

Repayment period 10 Years

Total instalments 120

Using the standard EMI calculation, you’d pay approximately ₹10,134 each month.

Breakdown of repayments;

EMI ₹10,134

Total repayment ₹12,16,080

Total interest ₹4,16,080

Loan amount ₹8,00,000

These are approximate figures and rounded up/down. This example assumes you have a fixed interest rate of 9% p.a, you’ll pay back your loan each month and there are no extra fees or interest accrued.

This example shows how much you’d pay in interest if you borrowed ₹8 Lakh with a 9% p.a interest rate over 10 years. You can compare short and long repayment periods to see which period would be best for your expected income.

What Does My Result Mean?

Once you’ve used the Student Education Loan Calculator, you can look at the below information;

EMI – How much you’ll pay each month. Compare this to your expected income after graduation and other essential costs.

Total interest – How much you’ll pay in interest.

Total repayment – How much you’ll pay overall, including principal and interest.

Repayment period – How long you’ll be paying back your loan. Generally the longer the repayment period the lower your EMI but the higher your interest.

Will you be able to afford this? Consider how much you expect to earn, how much help you’ll receive from your family, how much you have saved and other financial commitments.

The lowest EMI may not be the cheapest option. Compare how much you’ll pay per month vs total repayment.

What Affects My Result?

There are many factors that can affect your student loan repayments;

Loan amount – The bigger the principal the higher your EMI and total interest.

Interest rate – The higher the interest rate the more you’ll pay. Lower interest rates will generally mean less to pay back.

Repayment period – The longer the repayment period the lower your monthly payments but higher total interest.

Moratorium – Some lenders allow you to defer your repayments whilst you study.

Interest whilst studying – Interest may be added during your moratorium period.

Processing fees – Extra fees can increase the cost of your loan.

Fixed or variable interest rate – Variable rates can change over time.

Prepayments – Some lenders will allow you to pay extra towards your principal to reduce the amount you owe and the total interest.

Subsidies – If you’re eligible you may receive interest subsidies from the government.

Consider these factors when comparing student loan options.

Benefits and Uses

Using a Student Education Loan Calculator can help you in many ways;

Budget for your education – Get an idea of how much you’ll pay back.

Compare offers – See how much you’ll pay back with different interest rates, loan amounts and repayment periods.

Plan for your future – See how much of your future income you may have to pay back each month.

See how much you’ll pay in interest – In addition to your loan amount.

Find the right repayment period – Compare how much you can afford to pay each month vs total cost.

Help your parents budget – Help your parents get an idea of how much they’ll have to pay.

International options – Get an idea of how much you’ll pay back for your loan if you’re studying abroad. Be mindful of exchange rates as your loan and income may be in different currencies.

This is just a planning tool. Your lender will decide if you’re eligible based on their criteria. This may include your income, credit history, having a co-applicant, course details and more.

Accuracy, Assumptions & Limitations

The Student Education Loan Calculator is just an estimate based on the information you input.

Generally a standard EMI calculator will assume you’ll be paying a fixed interest rate, regularly each month and for a set period of time. Student loans often have special repayment terms, such as deferring payments, moratorium periods, subsidies and interest accrued.

If interest is being added whilst you’re studying, you’ll have a larger outstanding balance to pay back. This may not be reflected in a basic calculator. However, you can include this by adding extra to your principal.

This calculation may not include processing fees, insurance, penalties, variable interest rates and prepayment charges. If you’re studying abroad, you may also experience changes in your repayments due to exchange rates.

Always check your lender’s loan agreement and repayment schedule. If possible include any interest accrued and compare different repayment scenarios for a more realistic figure.

FAQs

1. What is a Student Education Loan Calculator?

A Student Education Loan Calculator is an online tool that can help you calculate how much you’ll pay per month (EMI), how much interest you’ll pay and how much you’ll pay overall. All you need to do is input your loan amount, interest rate and repayment period.

2. How do I calculate my EMI?

Input your principal loan amount, interest rate and repayment period. The calculator will use the standard EMI formula to give you an estimated amount.

3. Can I use it for international loans?

Yes. You can use it to calculate how much you’ll pay back if you’re using the loan to pay for your studies abroad. Select your currency if available and be mindful of exchange rates if your loan and income are in different currencies.

4. Does it include interest whilst studying?

Not always. A basic calculator may not include any interest that has been added whilst you’re studying/moratorium. If this is added to your loan, include this in your principal or use a calculator that includes interest whilst studying.

5. Will I pay less each month if I have a longer repayment period?

Yes. The longer your repayment period the lower your EMI will be. However, you will generally pay more in interest.

6. Can I pay my loan back early?

Many lenders will allow you to pay back your loan early or in part. Conditions will vary. Check if your lender charge any prepayment fees and how extra payments will affect your outstanding balance.

7. Is the calculation accurate?

No. This is just an estimate. Your repayments may vary depending on your lender, interest accrued, fees, variable interest rates, subsidies and prepayments. Always check with your lender for your final repayment schedule.